Traders keep bets against further Fed rate hikes

FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 8, 2019. REUTERS/Brendan McDermid/File Photo

(Reuters) – U.S. short-term interest-rate futures rose slightly on Wednesday just after minutes from the Federal Reserve’s most recent meeting showed policymakers want to be patient about further rate hikes.

Contracts tied to the Fed’s policy rate continued to price in less than a one-in-four chance of a 2019 Fed rate hike, and about a one-in-four chance of a rate cut by early next year.

Fed forecasts released last month signaled policymakers expect two rate hikes this year, but minutes released Wednesday showed many of them believe the U.S. central bank can afford to be patient about further tightening.